Existing System in Blockchain

In the previous segment, you understood what a database is and its various types. In this segment, you will be introduced to a crucial component of any business: an ‘intermediary’. Shebin explains it with an example in the video below.

An intermediary generally plays the role of a trusted middle party in any transaction, which connects two parties that are usually unknown to each other. While buying a house, you employ a broker as a middleman since he is a trusted source on whom you can rely for valid information. Athletes or celebrities rely on agents or managers to secure the best sponsorship or commercial deals.

Now that you have seen how an intermediary acts as a middleman in a transaction process, let’s take a look at the disadvantages of such a system.

An intermediary, generally, is an individual or an organisation that is involved between two parties in a transaction or a conversation. Traditionally, the significance of intermediaries lay in establishing trust among unknown parties. However, involving intermediaries also carries with it a fair share of drawbacks in the form of monetary charges, process inefficiencies and security concerns.

Additional Reading:

1. You can find additional information about a financial intermediary here.

2. To get more information on types of intermediaries, visit this page.

3. To read more about intermediary organisations, visit here.